JD Sports in double Dutch deal
SPORTS retailer JD Sports Fashion is to buy the assets and trade of two Dutch sports businesses for £21m.
The Bury-based retailer has set up a new Dutch subsidiary, Sports Unlimited Retail BV, to make the acquisition of trading assets and trade of Aktiesport and Perry Sport. The assets acquired comprise principally inventories, fixtures and fittings and intellectual property.
It will buy them from the Trustee of Unlimited Sports Group BV, which was declared bankrupt by the court of Amsterdam in February.
Upon completion, a total cash consideration of €26.5m (£20.9m) is payable excluding fees, retention of title and other claims arising consequent upon the bankruptcy process.
Based in Amsterdam, Aktiesport and Perry Sport have a combined portfolio of 187 stores throughout the Netherlands of which 55 will close imminently following the termination of the lease by the Bankruptcy Trustee.
For the year ended 31 December 2014, the combined Aktiesport and Perry Sport businesses delivered consolidated revenues of €159.4m, an operating profit of €1.5m, a profit before tax of €0.2m and gross assets of €67.4m.
Prior to the acquisition, JD had a more limited presence in the Netherlands with 16 stores and a Dutch language trading website.
Peter Cowgill, executive chairman of JD Sports, said: “We are delighted with the acquisition of these well-established retail businesses, which will strengthen our presence in the Netherlands, in line with our ambition to increase our European footprint.”
In accordance with Dutch law, the transaction has been notified to the Authority for Consumers & Markets (ACM) in the Netherlands and completion is conditional on JD receiving formal clearance from the ACM.
